Priciest new homes in U.S. built in New Jersey, New York, Pennsylvania region

RuthMantell

WASHINGTON (MarketWatch) — Buyers who want a new home in the Middle Atlantic region are paying up, reflecting pricier tastes and high local labor costs, according to recent research.

The median sales price for a new “spec” single-family home in the Middle Atlantic was $131 per square foot in 2013 — 52% more than the U.S. median — making that region the country’s most expensive, according to findings from the National Association of Home Builders, which crunched government data for its report. Speculatively-built homes are residences constructed on a builder’s land that are sold in one deal along with the land.

The Middle Atlantic includes New York, New Jersey and Pennsylvania. High home prices in these states show that the relatively large share of well-heeled buyers are demanding nicer finishing touches, such as ceramic rather than vinyl flooring.

“It’s the level of finish, the level of accessories,” said David Crowe, NAHB’s chief economist.

Higher costs in the Middle Atlantic region also reflect other higher costs, such as construction workers’ wages, he said. Meanwhile, the country’s least expensive spec homes in 2013 were found in the West South Central region, which includes Arkansas, Louisiana, Oklahoma and Texas. Homes there cost $73 per square foot, according to NAHB.

Spec homes accounted for about three-quarters of new-construction starts on single-family homes last year. The rest were for custom-built homes, which are erected on an owner’s land. The priciest custom residences were found on the coasts. In the Pacific region, the price per square foot was $145, compared with $143 in New England, according to NAHB. The cheapest custom homes were in the East South Central area.

“It’s partly related to incomes, but more perhaps related to vacation areas,” said Sam Khater, CoreLogic’s deputy chief economist. “New England and Pacific [areas] have states with the highest shares of vacation homes in the country.”

In most of the U.S., a custom home costs more than a spec home.

“New custom home buyers are not only willing to wait longer to move into a new home but also pay extra for more expensive features and materials,” NAHB reported.

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